Dynamics GP – Recourse Management or Payroll System

A payroll / personnel system involves all phases of payroll processing and personnel reporting. The system provides a means of promptly and accurately paying employees, generating the necessary payroll reports, and supplying management with the required employee skills information. The processing should include a deduction for with holding taxes, specialized deductions, government reporting, and internal personnel requirements. An efficient system is necessary to establish and maintain good employer-employee relationships.

System Function in Payroll Application Program

Two data flows enter the payroll system from departmental managers and supervisor’s attendance time records and job time records. Attendance time records shows the time period that employees are in attendance at the job site and available for work. These records are used to calculate the gross amount of each employees pay. Job time records on the other hand reflect that start and stop times on specific jobs. Their purpose is to allow the distribution of payroll costs to jobs in process (or to other accounts).

Attendance time records maintained near the entrance of the workplace and after take the physical form of time sheets that are stamped as employees come and go. Job time records are prepared at the worksite by employees entering the time each job is started and stopped.

“Reconcile hours worked” compares the total hours of each works as shown by at the attendance time record with the hours reflected on the job time records for that employee. The hours should agree. This reconciliation’s is one of the payroll system control plans.

Personnel

The personnel office is responsible for placing people on the company’s payroll, specifying rates of pay, and authorizing all deductions from pay. All changes such as adding, or deleting employees, changing pay rates, or changing levels of deductions from pay must be authorized by the personnel office. The personnel function is distinct from time keeping and from payroll preparation function.

Time keeping

The time keeping function is responsible for the preparation and control of time reports and job time tickets. In manufacturing firm, an hourly employee typically clocks on and off of the job. At the end of the period, the employee’s time card or time report indicates the amount of time that the employee was on the job and the time that he or she expects to receive pay for. Time keeping is responsible for collecting and maintaining time cards and reconciling these data to job time summary reports that are received from production.

Payroll

The payroll department is responsible for the actual computation and preparation of payroll. Note that preparing payroll is independent of preparation of the input data on which pay is based, the time reports and personnel data. Personnel data are received from the personnel office; time reports are received from time keeping. The payroll register details the computation of net pay (gross pay less deductions from pay). Pay checks are sent cash payment for signature, review, and distributions. A copy of the payroll register is sent to accounts payable to initiate the recording of a voucher for the payroll.